When exchanging currency, it is based on the selling price. Choose a bank as the venue. A bank is a financial institution established in accordance with the law to engage in currency and credit business.
Selling exchange rate, that is, selling price. When using the direct pricing method, among the two domestic currency prices of foreign currencies quoted by the bank, the latter number (that is, the exchange rate at which the foreign currency is converted into more local currency) is the selling price.
When quoting using the indirect pricing method, among the two foreign currency prices of the local currency, the smaller foreign currency number is the number of foreign currencies that the bank is willing to pay for one unit of the local currency, that is, the foreign exchange selling price.
Extended information
The difference between the foreign exchange buying exchange rate and the selling exchange rate is called the "buying and selling spread", which is generally 1-5%. The calculation method is: (selling price - buying price) Bidding price)/Selling price × 100%. It constitutes the source of profits for banks operating foreign exchange trading business.
The smaller the bid-ask spread, the more competitive the foreign exchange bank's operations are or the more developed the foreign exchange market is. For example, the U.S. dollar and British pound are frequently traded and have large transaction volumes, which can create economies of scale. Therefore, the buying and selling price difference between these two currencies in the New York and London foreign exchange markets is only 0.5‰.
Forex transactions are usually quoted in U.S. dollars. If the exchange rates of all currencies against the US dollar are known, then the exchange rate between any two non-US dollar currencies can be easily calculated. This is the so-called "cross exchange rate" or "arbitrage exchange rate." When calculating cross rates, it is important to use the bid and ask prices correctly.
Baidu Encyclopedia--Selling Price
Baidu Encyclopedia--Bank